{"id":118092,"date":"2020-08-05T11:45:22","date_gmt":"2020-08-05T04:45:22","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-market-avoided-major-price-correction-during-pandemic-orangetee-amp-tie\/"},"modified":"2020-08-05T12:03:04","modified_gmt":"2020-08-05T05:03:04","slug":"hdb-resale-market-avoided-major-price-correction-during-pandemic-orangetee-amp-tie","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-market-avoided-major-price-correction-during-pandemic-orangetee-amp-tie\/","title":{"rendered":"HDB resale market avoided major price correction during pandemic: OrangeTee & Tie"},"content":{"rendered":"


\nDespite the COVID-19 pandemic and circuit breaker measures, HDB resale prices remained stable. However, HDB resale transactions fell by over 41.9% to 3,426 units during Q2 2020.\u00a0
\nDespite the COVID-19 pandemic and the uncertain global economic outlook, Singapore\u2019s HDB resale market avoided a major price correction, with prices remaining surprisingly stable in the past two quarters, revealed OrangeTee & Tie.
\nHDB public housing data for Q2 2020 showed that HDB resale flat prices marginally increased by 0.3% quarter-on-quarter, after holding flat in the previous quarter.
\nOrangeTee believes the four rounds of aggressive stimulus packages by the government has been effective in preventing a housing market meltdown or property price collapse.
\n\u201cCurrently, prices of flats seemed to be holding firm with no apparent panic selling island-wide,\u201d said Christine Sun, Head of Research & Consultancy at OrangeTee & Tie.
\nShe noted that the various financial assistance measures like allowing eligible homeowners to defer loan repayments, may have helped prevent \u201ca potential tide of loan defaulters from selling their units in haste or offloading their homes at excessively low prices during financial difficulties\u201d.
\nMoreover, the government\u2019s stringent regulatory measures such as Mortgage Servicing Ratio (MSR), which limits mortgage loans of homeowners, have also effectively instilled financial prudence among buyers.
\n\u201cCurrently most Singaporeans seem to have the ability to service their housing loans despite the current economic challenges,\u201d said Sun.
\nBut while prices remained stable, the number of resale transactions dropped by over 41.9% to 3,426 units during Q2 2020. On an annual basis, resale volume fell 45.4% from Q2 2019\u2019s 6,276 units.
\nOrangeTee attributed the sales decline to the tighter safe distancing measures enforced by the government during the pandemic and the circuit breaker period.
\n\u201cA two-month circuit breaker period was implemented in April and May during which house viewings were barred while social interactions and movements were greatly reduced to prevent the spread of the coronavirus in the community. The HDB office was closed and some transactions could not be completed,\u201d said Sun.
\nIn April, the number of resale transactions fell to 424 units, while May posted a historical monthly low of 363 units, showed HDB data from data.gov.sg.
\nThe HDB resale market roared back to life when the government lifted the circuit breaker measures in early June. Sales volume in June rebounded strongly by 575.2% month-on-month to 2,451 units.
\nMeanwhile, most mature estates saw HDB resale transactions fall in Q2 2020. In fact, the total number of transactions in these estates declined by 40.4% quarter-on-quarter to 1,329 units in Q2 2020.
\nSuggested read:\u00a0HDB Flats in Singapore (2020): Are Resale Units Really More Expensive Than BTOs?
\nTampines emerged as the most popular estate, with 217 units sold during the period under review, followed by Bedok and Ang Mo Kio with 180 and 161 units sold, respectively.
\nBishan registered the highest average price for a flat at $630,923, followed by Bukit Timah and Queenstown at $621,300 and $601,852, respectively.
\nSales volume at non-mature estates fell by a bigger magnitude when compared to mature estates, at 41.4% to 1,909 units last quarter.
\nDespite the drop in sales, more than 200 units were shifted across many estates in Q2 2020, including Yishun which saw 283 units sold, Sengkang with 260 units and Woodlands with 223 units. Jurong West and Punggol also sold 210 and 200 units, respectively.
\nHougang recorded the highest average price for a flat at $455,936, followed by Punggol and Sengkang at $449,226 and $445,635, respectively.
\nLooking ahead, OrangeTee expects demand for HDB resale flat to return to some normalcy over the coming months given that house viewings have fully resumed.
\nHowever, it expects total resale transaction for this year to be lower than the previous year at about 18,000 to 20,000 units.
\n\u201cAt this juncture, a significant price correction is rather remote unless the pandemic deteriorates rapidly and our unemployment rate rises significantly,\u201d said Sun.
\n\u201cNonetheless, a supply overhang with many HDB flats reaching their five-year Minimum Occupation Period may continue to exert some downward pressure on prices. The overall resale price could range between -2 and 1 per cent this year,\u201d she added.
\nSuggested read:\u00a05 BTO Projects That Have Recently Crossed their 5-Year HDB MOP in 2020
\n\u00a0
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…HDB resale market avoided major price correction during pandemic: OrangeTee &amp; Tie<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the COVID-19 pandemic and circuit breaker measures, HDB resale prices remained stable. However, HDB...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-118092","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-uII","jetpack-related-posts":[{"id":117944,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-up-in-q2-while-transaction-volume-drop\/","url_meta":{"origin":118092,"position":0},"title":"HDB resale prices up in Q2, while transaction volume drop","date":"July 24, 2020","format":false,"excerpt":"\r Resale transactions fell by more than 41.9% to 3,426 units in Q2 2020 from the previous quarter\u2019s 5,893 units.\u00a0 Resale prices of Housing and Development Board (HDB) flats increased 0.3% quarter-on-quarter in the second quarter of 2020, after holding flat in the previous quarter. OrangeTee noted resale prices \u201chave\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117476,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-climb-0-2-in-q2\/","url_meta":{"origin":118092,"position":1},"title":"HDB resale prices climb 0.2% in Q2","date":"July 1, 2020","format":false,"excerpt":"\r HDB flash estimates showed that the resale price index increased by 0.2% in Q2 2020, after staying flat in Q1 2020. Whilst the COVID-19 pandemic has affected property prices in the private market, resale prices of HDB flats remained relatively stable in the last two quarters. HDB flash estimates\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":116101,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-not-to-correct-excessively\/","url_meta":{"origin":118092,"position":2},"title":"HDB resale prices not to \u201ccorrect excessively\u201d","date":"May 6, 2020","format":false,"excerpt":"\r OrangeTee & Tie\u00a0expects property sales to \u201cpick up speed and regain some momentum when the crisis subsides and safe distancing measures are gradually eased\u201d.\u00a0 While housing demand may ease should the Covid-19 pandemic persist, OrangeTee & Tie does not expect resale prices of Housing and Development Board (HDB) flats\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":121031,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-hdb-resale-prices-increase-for-fifth-consecutive-quarter\/","url_meta":{"origin":118092,"position":3},"title":"Private home, HDB resale prices increase for fifth consecutive quarter","date":"July 23, 2021","format":false,"excerpt":"\r Private home and resale flat prices have continued to climb for the fifth straight quarter, as demand for properties continued to be strong in Q2 2021 despite the Phase 2 (Heightened Alert) measures.\u00a0 Singapore\u2019s housing market has continued to remain resilient amid the COVID-19 pandemic, with private home prices\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/Singapore-condo.original.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":119976,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-up-3-1-in-q4-2020-5-in-2020\/","url_meta":{"origin":118092,"position":4},"title":"HDB resale prices up 3.1% in Q4 2020, 5% in 2020","date":"January 22, 2021","format":false,"excerpt":"\r For the whole of 2020, prices grew 5%, the steepest increase since Q4 2012 and higher than the 0.1% gain registered in 2019. 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